Texas Minimum Wage: Current Rate & Scheduled Increases

The Fair Labor Standards Act (FLSA), enacted in 1938 and codified at 29 U.S.C. § 206, establishes the federal minimum wage at $7.25 per hour. This rate has remained unchanged since July 24, 2009. The FLSA applies to employers engaged in interstate commerce with annual gross sales of $500,000 or more, as well as certain seasonal and agricultural businesses. The law covers all non-exempt employees, including hourly workers, salaried workers earning below the overtime threshold, and certain commissioned employees.

The Department of Labor (DOL) enforces the FLSA through its Wage and Hour Division. Employers must pay the higher of either the federal minimum wage or any applicable state minimum wage. The federal minimum wage sets a floor; states and localities may impose higher rates, which then become the operative minimum. Employers must keep accurate records of hours worked and wages paid, and must pay all earned wages on regular pay schedules.

Remedies for minimum wage violations under the FLSA include back pay for all unpaid wages, liquidated damages equal to the amount of back pay (essentially doubling the recovery), and attorney's fees and costs. Non-exempt employees cannot waive minimum wage protections. Certain narrowly defined categories of workers—including some agricultural workers, domestic workers, and employees of certain small businesses—may be exempt, though these exemptions are interpreted strictly.

Texas does not have a separate state minimum wage law. Texas Government Code § 62.351, which applies to state employees, requires compliance with federal minimum wage but does not establish a state floor above the federal rate. Consequently, the federal minimum wage of $7.25 per hour is the operative minimum wage for all private and public employers in Texas.

Because Texas has no state-specific minimum wage statute, there is no state-level law that is stronger or weaker than federal law on this issue. Texas employers are subject only to federal FLSA requirements and to the Wage and Hour Division's enforcement authority. Texas does not have a separate state labor department with independent minimum wage jurisdiction; labor law enforcement in Texas is handled by the federal DOL's Wage and Hour Division, which covers all employers subject to the FLSA.

Texas does not provide any enhanced protections, higher minimums, or expanded categories of covered workers beyond what federal law requires. However, certain Texas cities have attempted to implement higher minimum wages for municipal employees and city contractors. For example, the City of Austin has established minimum wage requirements for city employees and contractors that exceed the federal rate, but these are limited to city government and do not override the state or federal baseline for private employers.

Under Texas at-will employment doctrine, employers may reduce wages for future work (with proper notice), but they cannot retroactively reduce earned wages or fail to pay the minimum wage for work already performed. The remedies available to Texas workers for minimum wage violations are those provided by federal law: back pay, liquidated damages, and attorney's fees through the FLSA private right of action or through DOL enforcement.

Several important exceptions and defenses apply to minimum wage requirements in Texas. First, certain categories of workers are exempt from FLSA minimum wage requirements entirely. These include executive, administrative, and professional employees (the 'white collar' exemption under 29 U.S.C. § 213(a)), as well as outside sales employees. These exemptions apply only if the employee's duties and salary meet strict criteria; Texas courts and the DOL interpret these narrowly, and the burden is on the employer to prove an exemption applies.

Second, employees of certain small businesses may not be covered by the FLSA. The statute applies only to employers engaged in interstate commerce with $500,000 or more in annual gross sales, or to certain seasonal businesses. Purely local businesses below this threshold may not be covered; however, the definition of 'interstate commerce' is broad and includes most retail and service businesses that purchase goods from suppliers outside the state.

Third, certain agricultural employees and domestic workers have reduced protections under the FLSA, though these exemptions are narrow. Agricultural employers may be exempt if they employ fewer than a certain number of workers or meet specific size thresholds, but most commercial farms in Texas are covered.

Fourth, the FLSA does not require overtime pay at the federal minimum wage (though overtime premiums are required for non-exempt workers above 40 hours per week under separate FLSA provisions). Employers may pay exactly the minimum wage for all hours, including overtime hours, as long as they pay overtime premiums on top of that base rate.

Fifth, Texas employees are at-will and can be terminated for any non-discriminatory, non-retaliatory reason. However, an employer cannot reduce wages owed for work already performed as a form of retaliation or discipline. Wage theft is a violation of minimum wage law regardless of the employment relationship.

Step 1: Document Everything. Keep detailed records of all hours worked, including start times, end times, break times, and daily and weekly totals. Photograph or screenshot your time records, paycheck stubs, and direct deposit confirmations. Note dates of any conversations with management about pay, any promises regarding wages, and any pay discrepancies you notice. Save all written communications—emails, texts, or messages—from your employer regarding your compensation. If your employer does not provide a pay stub showing hours and pay, that itself is a violation. Document the name, title, and contact information of any witness to wage violations or to your reporting of them.

Step 2: Raise the Issue Internally. Before filing a formal complaint, communicate with your direct supervisor or HR department in writing (email is best) stating that you believe you have not been paid the minimum wage and requesting an explanation and correction. Request a written response and keep all communications. Explain the specific dates, hours, and pay rates you believe constitute underpayment. Do not assume the violation is accidental; it may be a simple payroll error. Internal complaint processes do not protect your job, but they create a clear record and give the employer an opportunity to correct the problem, which may result in faster resolution.

Step 3: File a Wage Complaint with the U.S. Department of Labor. The federal Wage and Hour Division (WHD) investigates minimum wage violations in Texas. You can file a complaint online at www.dol.gov/agencies/whd/contact or by calling the Wage and Hour Division Houston District Office at (713) 718-6000. You may also file through the state portal at www.whistleblowers.gov. The complaint should include: your name and contact information; your employer's name, address, and phone number; dates of the alleged violations; the job position you held; your wage history (dates paid, amounts, hours worked); and a description of how you were underpaid. There is no filing deadline to initiate a DOL investigation, but individual civil actions have statute of limitations periods (see key thresholds). The DOL does not require you to file first; you can proceed directly to court if you prefer.

Step 4: The Investigation Process and Your Rights. Once the WHD receives your complaint, they will investigate within a reasonable timeframe, typically 30 to 60 days for straightforward violations. The investigator will contact your employer, request records of your employment (pay stubs, time records, contracts), and may conduct an on-site inspection. You have the right to speak with the investigator confidentially. The investigator will determine whether minimum wage violations occurred and will calculate the amount owed. If violations are found, the WHD will attempt informal resolution with the employer. If the employer cooperates, they may agree to pay back wages plus penalties. If the employer refuses or disputes the findings, the DOL may pursue a civil action on your behalf or may refer the case to the Department of Justice. The entire process typically takes 2 to 4 months.

Step 5: Consider an Attorney and File a Private Lawsuit if Necessary. If the DOL does not resolve your case or if you wish to pursue faster relief, you have a right to file your own civil action under the FLSA in state or federal court without first exhausting DOL remedies. Texas courts recognize private rights of action for wage violations. An employment attorney can evaluate whether you have a strong claim, help determine the amount owed (including liquidated damages), and assess whether a class action may be appropriate if other employees were similarly underpaid. Consult an employment attorney if your underpayment exceeds $2,000 or affects multiple pay periods. Many employment attorneys work on contingency, meaning you pay only if you win. The FLSA provides for attorney's fees and costs to prevail, so your attorney's fees may be recoverable from your employer.